Discuss the "Equity Release… I wish I knew the answer…" Blog

AngiPat

Hi, My Mum has a 'lifetime mortgage' originally for £20,000 for home improvements, this was taken out 10 years ago.  She now needs looking after but instead of her going into a care home my sister, myself and my Mum are all selling our individual houses to buy one large bungalow which is suitable for Mum so that we (my sister and I) can jointly look after her.
Mum wants to pay off the debt that has accumulated from the proceeds of the sale of her house,  the debt is now approximately £36.000. The loan company want to charge approx £4000.00 in early repayment fees. However I thought I read somewhere that if somebody is having to move as they are no longer able to look after themselves the added early repayment fee should not be added.  Does anybody know if this is correct? Or would that only apply if she was going into a nursing home rather than her family looking after her? Any advice gratefully received.